Fiscal Year 2023-24
Mid-Year Budget Update
February 20, 2024
ATTACHMENT 6
Reasons for Mid-Year Adjustments
Emergencies
Capital needs
Emerging opportunities
Unforeseen economic changes
Shifts in priorities requiring reallocation of funding Mid-Year is an opportunity to update budget based on:
2 ATTACHMENT 6
Mid-Year Adjustments Summary
CATEGORY CURRENT BUDGET PROPOSED CHANGES TOTAL PROPOSED BUDGET Total Revenues 224,110,454 3,849,592 227,960,046
Salaries & Benefits 84,784,021 1,354,163 86,138,184
Operating Expenditures 100,122,798 2,831,802 102,954,600 Capital Expenditures 94,119,184 3,762,027 97,881,211
Debt Service 6,033,267 - 6,033,267
Transfers 2,065,000 - 2,065,000
Total Expenditures 287,124,270 7,947,992 295,072,262
NET IMPACT (63,013,816) (4,098,400) (67,112,216)
All Funds
Commentary
Revenues increased by 4.6m; this accounts for park acquisition fees that was missed for $2m; along with property sales at $1.57m that was not budgeted for. Increased development is expected to add another $550,000 in fee revenue. Other increases are related to account lines that are doing better than expected. There was a decrease in revenue of $757k for discontinued recreation programs for a net increase to revenues of $3.8m.
Most expenditure adjustments for salaries & benefits are related to MOU signing bonuses, missed part-time, overtime and out-of-class budgets.
Operating increases are mostly related to water meter software needs, replacing damaged solid waste commercial containers, additional funding for pavement, traffic control and streetlight maintenance, along with various small increases across accounts for building repairs, training, and equipment rentals. Whenever appropriate, these costs were offset by vacancy savings. Capital increases include funding for Louise Avenue & Lathrop Road improvements, and large equipment for Streets to aid in pavement maintenance. 3 ATTACHMENT 6
General Fund Adjustments
Fund 100 - General Fund
Adopted Budget Amended Budget
Actuals through
December Mid-Year Requests Proposed Budget % Change
REVENUES
Licenses and Permits 865,000 865,000 847,816 35,000 900,000 4% Public Safety Programs 1,743,300 1,743,300 537,693 (522,000) 1,221,300 -30% Rental Property 500,000 500,000 161,532 63,000 563,000 13% Total Revenues 69,111,437 69,111,437 20,278,411 (424,000) 68,687,437 -1%
EXPENDITURES BY CATEGORY
Salaries & Benefits 42,997,821 43,317,617 20,216,039 966,507 44,284,124 2% Operations 23,937,427 24,751,421 9,796,929 666,260 25,417,681 3% Capital - 498,526 764,091 362,000 860,526 73%
Total Expenditures 68,955,248 70,587,564 30,777,059 1,994,767 72,582,331 3% Commentary
Revenue adjustments: We increased budget for Licenses
and Permits and Rental Property based on current activity.
Public Safety Mutual Aid was decreased for technical cleanup and unanticipated need for the remaining fiscal year for a net General Fund revenue decrease of $424k.
Expenditure adjustments: We discovered an extra
Firefighter was budgeted in Measure M so he was moved
to General Fund; MOU signing bonuses, and part-time,
overtime and out-of-class budgets missed at adoption
(S&B); homeless encampment abatements and various
small increases across departments (operations); added
parking lot improvement budget and additional
appropriations for two Public Safety projects: Police
Dispatch Backup Battery & Aerial Ladder Truck (capital) for a net expenditure increase of $1.9m
EXPENDITURES BY DEPARTMENT
Non Departmental 10,874,000 10,886,077 5,707,977 310,000 11,196,077 3% City Clerk 1,174,550 1,298,372 424,916 (1,600) 1,296,772 0% City Attorney 1,694,738 1,648,706 721,441 113,900 1,762,606 7% City Manager 5,509,713 5,702,018 1,823,241 76,900 5,778,918 1% Human Resources 1,301,839 1,305,629 586,386 32,300 1,337,929 2% Finance 2,898,375 2,916,596 1,102,126 140,800 3,057,396 5% Police 22,589,432 23,051,604 10,668,794 466,953 23,518,557 2% Fire 11,895,342 12,086,281 5,550,913 529,589 12,615,870 4% Recreation 1,179,426 1,196,412 301,822 60,600 1,257,012 5% Public Works 9,585,008 10,241,016 3,797,979 265,325 10,506,341 3% Total Expenditures 68,955,248 70,587,564 30,777,059 1,994,767 72,582,331 3% 4 ATTACHMENT 6
Capital Improvement Plan Adjustments
Commentary
The Manteca Transit Bus Facility had no
activity for three years and, per policy, was
closed and reopened, so there is an offset of
$5.1m. Most of the other projects will assist
with pavement maintenance and
improvement efforts.
Additional funding for current projects is
needed to cover additional expenses; the
$1.8m related to installing fiber cable for the
Traffic Signal Update project to remain in
compliance.
5 ATTACHMENT 6
Capital Improvement Plan Adjustments (cont.)
Commentary
Request to add appropriation for a previously approved, but not funded, Cracksealer. The Sound Wall replacement project is requested to close so budget can be reallocated to newly proposed projects, but is anticipated to be brought back in FY25. Also, per policy, the Manteca Transit Bus Facility project that had no activity will be closed; funding is offset with the new project. Lastly, we request funding for multiple vehicles that were budgeted in Fund 420 (Gas Tax) instead of Fund 820 (Vehicles) be corrected. The net fiscal impact for all capital adjustments is $3.7m. 6 ATTACHMENT 6
Position Control Adjustments
Commentary
Solid Waste is requesting additional staff. Due to the time is takes to recruit and hire, the additional appropriation is calculated for only 2.5 months remaining in the fiscal year. These positions will be budgeted for in full starting in the next fiscal year. The Solid Waste Supervisor position requires a new job description and Human Resources will bring it to Council separately for full approval at a later date. 7 ATTACHMENT 6
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ATTACHMENT 6